“Throughout history, it has been the inaction of those who could have acted; the indifference of those who should have known better; the silence of the voice of justice when it mattered most; that has made it possible for evil to triumph.”
Haile Selassie

Monday, March 18, 2013

Governor Pence Makes Case for Income Tax Cut

On March 10, The Indianapolis Star published an editorial,
“Pence tax cut not prudent;” and while I disagree with the paper’s conclusion,
its praise of fiscal discipline is a testament to the kind of state Indiana has
become.

Governor Mike Pence

Our administration’s budget is balanced and responsible.
While designing our budget, I made it clear that Indiana’s fiscal health was a
top priority. I wanted a budget that increased our reserves from the current
level of $2 billion. I committed to hold the line on spending while
prioritizing key investments in education, workforce, and infrastructure. And I
wanted a budget that let hardworking Hoosiers keep more of what they earn.

Thanks to the fiscal stewardship of the Daniels
administration and the leadership of the Indiana General Assembly, today our
state government is able to fund our priorities, protect our reserves and still
have more than enough room to enact the across-the-board income tax relief that
Hoosiers deserve.

With the state reporting the largest budget surplus in
history, people should be able to keep more of what they earn. As governor, I
am just as concerned about the family budget of every Hoosier household as I am
about the state government’s budget. When it comes to excess government
revenues, it’s not a question of whether the money will be spent, it’s who is
best-suited to spend it. I will always believe that the people of Indiana will
spend their own hard-earned dollars more productively than any agency of
government.

Lowering the income tax is the best way to help the most
people. While corporate tax relief would benefit 17 percent of our businesses
and estate tax relief would benefit 5,000 estates, 83 percent of businesses and
4.4 million middle-class taxpayers would benefit under my tax plan.

Most of the things written about my proposal to reduce
income taxes by 10 percent have focused on whether our state government can
“afford” to cut taxes for Hoosiers. My budget clearly shows that we can afford
it. Given the daily competition among states for jobs, the real question is
whether we can afford not to cut taxes.

Indiana’s economy is still struggling. Unemployment is
stubbornly above 8 percent and our economy needs a boost. We need a competitive
edge against other states and nations. My tax cut is part of a comprehensive
plan to accomplish both.

Despite this newspaper’s assertion that income tax relief is
unnecessary for economic growth, the evidence suggests otherwise. Lower taxes
will mean more jobs, and 27 states already have a lighter tax burden than
Indiana. States with tax climates more favorable than ours are experiencing GDP
growth well above the national average. They disproportionately lead the nation
in population growth as they scoop up talent and investment that should be
moving to Indiana — but isn’t.

Our tax cut is fiscally prudent. Our budget looks beyond the
state’s two-year budget cycle and is based on the idea that spending should be
sustainable and protect our reserves. In my budget, spending is more than a
full point below inflation and reserves increase to $2.3 billion — even while
giving millions of Hoosiers a tax break. By way of comparison, the recently
passed House budget would reduce our reserves to $1.85 billion at the end of
fiscal year 2014 and grow them back to more than $2 billion in fiscal year 2015
— with no new tax relief for Hoosiers.

The reserves in my budget are greater than the entire
revenue decline we suffered in 2008-2009 when Indiana weathered the worst
recession since the 1930s. Our goal must be to protect Hoosiers against future
downturns while giving them the break they need now. The feast-or-famine
problem the editors highlighted is not an unavoidable economic cycle. It is an
outcome we can prevent by continuing to practice the fiscal discipline the
editors praise.

In accepting this job, I promised to be the governor of all
the people of Indiana. Across-the-board income tax relief is the best way to
lessen the burden of taxes on all Hoosiers, strengthen our economy and protect
our state’s fiscal health.

As the debate over our budget continues, I look forward to
working with Senate President Pro Tem David Long, House Speaker Brian Bosma,
and all the good men and women of the Indiana General Assembly. I am confident
that together we will produce a fiscally sound budget that funds our priorities
and offers the kind of tax relief that Hoosiers need and deserve.

Indiana’s economy is still struggling. Unemployment is
stubbornly above 8 percent and our economy needs a boost. We need a competitive
edge against other states and nations. My tax cut is part of a comprehensive
plan to accomplish both.

Despite this newspaper’s assertion that income tax relief is
unnecessary for economic growth, the evidence suggests otherwise. Lower taxes
will mean more jobs, and 27 states already have a lighter tax burden than
Indiana. States with tax climates more favorable than ours are experiencing GDP
growth well above the national average. They disproportionately lead the nation
in population growth as they scoop up talent and investment that should be
moving to Indiana — but isn’t.

Our tax cut is fiscally prudent. Our budget looks beyond the
state’s two-year budget cycle and is based on the idea that spending should be
sustainable and protect our reserves. In my budget, spending is more than a
full point below inflation and reserves increase to $2.3 billion — even while
giving millions of Hoosiers a tax break. By way of comparison, the recently
passed House budget would reduce our reserves to $1.85 billion at the end of
fiscal year 2014 and grow them back to more than $2 billion in fiscal year 2015
— with no new tax relief for Hoosiers.

The reserves in my budget are greater than the entire
revenue decline we suffered in 2008-2009 when Indiana weathered the worst
recession since the 1930s. Our goal must be to protect Hoosiers against future
downturns while giving them the break they need now. The feast-or-famine
problem the editors highlighted is not an unavoidable economic cycle. It is an
outcome we can prevent by continuing to practice the fiscal discipline the
editors praise.

In accepting this job, I promised to be the governor of all
the people of Indiana. Across-the-board income tax relief is the best way to
lessen the burden of taxes on all Hoosiers, strengthen our economy and protect
our state’s fiscal health.

As the debate over our budget continues, I look forward to
working with Senate President Pro Tem David Long, House Speaker Brian Bosma,
and all the good men and women of the Indiana General Assembly. I am confident
that together we will produce a fiscally sound budget that funds our priorities
and offers the kind of tax relief that Hoosiers need and deserve.

About Me

I have been an attorney since the Fall of 1987. I have worked in every branch of government, including a stint as a Deputy Attorney General, a clerk for a judge on the Indiana Court of Appeals, and I have worked three sessions at the Indiana State Senate.
During my time as a lawyer, I have worked not only in various government positions, but also in private practice as a trial attorney handing an assortment of mostly civil cases.
I have also been politically active and run this blog in an effort to add my voice to those calling for reform.